UNION OF INDIA vs SITA RAM JAISWAL

The Supreme Court clarified that under Section 70 of the Indian Contract Act, a cause of action requires three ingredients: lawful delivery of goods, intention not to act gratuitously, and benefit to the recipient. The Court held that proper pleadings are essential before proceeding to trial, and in this case, the respondent should not have been allowed to proceed without them. The Court also noted that restoration under Section 70 does not necessitate actual delivery of goods but can be indicated through intent to reclaim rejected goods.